Bitcoin Price Climbs Above $19,000 for the First Time since 2017
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- Bitcoin Price nearing all-time high up 170% for 2020
- The digital currency mania makes a strong return
- Well-known figures opting for Bitcoin
Bitcoin Price is now closing in on a record high as the digital currency mania returned in 2020. The top cryptocurrency by market cap is up over 170% year to date. Bitcoin gained close to 4% on Tuesday reaching a high of $19,419, just some $200 shy of the all-time record in December 2017.
The last time Bitcoin traded above $19,000 was on Dec 18 and 19, the days of the all-time high. Since then, the cryptocurrency and its holders have experienced massive shake-ups and spectacular crashes. Following the peak in 2017, the price slipped by 85% to trade around $3,000 in Dec 2018.
On Tuesday Bitcoin surpassed the $19,000 for the second time in history, this time with some big Wall Street players on board. Market wizards such as Paul Tudor Jones and Stanley Druckenmiller publicly confirmed they own Bitcoin, Bill Miller recommends buying Bitcoin, Anthony Scaramucci’s hedge fund signaled that they will seek exposure to digital assets, while Ray Dalio, founder of the largest hedge fund, is open to learning more about the coin.
The Return of Crypto Mania
The return of Bitcoin mania in 2020 has prompted some fintech companies to jump on the crypto bandwagon. Corporations such as Square and PayPal are now offering Bitcoin as part of their portfolio. Square, a US payment company, bought $50 million worth of Bitcoin a couple of months ago. In 2018 they made Bitcoin trading available through their Cash App. Payments giant PayPal just recently introduced Bitcoin as an asset that can be purchased, stored, and sold by its user base in the US. By 2021 the company has promised to make Bitcoin available in Venmo and to allow the millions of merchants that use PayPal to accept Bitcoin for payment. Money manager Fidelity Investments also announced that it is launching its first Bitcoin fund.
As established participants and corporations are now entering the Bitcoin market, the whole crypto space is suddenly in the spotlight, sparking the interest of many. Cryptocurrencies as a risk-on asset class are a preferred investment to those who consider the persistently low-interest rates to be unattractive even more so in times of a global pandemic. Despite the challenging and uncertain times of 2020, the global cryptocurrency market is up for the year as total market capitalization stood at $191B on Jan 1 while on Wednesday, Nov 25, the total valuation is around $580B, or over 215% increase. Bitcoin accounts for about 62%, or close to $360B.
Other cryptocurrencies (known as altcoins) are also on a bull run as Ethereum, the second most valuable cryptocurrency, passed the $600 milestone, a level not seen since June 2018. Ethereum is up over 350% year to date. XRP, the third most expensive cryptocurrency by market cap, shot up over 40% on Tuesday to trade over $0.70, reaching a high last seen in May 2018. XRP is up over 130% for the last 7 days, while Bitcoin climbed over 7% for the same period and Ethereum gained 25%.
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